Over 75% of managers face pay decision appeals due to data gaps – HiBob

Research from HiBob found most UK companies claim pay decisions are fair, but managers are facing regular challenges. 

Over three-quarters (76%) had promotion allocation decisions formally appealed in the last year, 78% reported appeals over setting or adjusting base pay, and 78% over assigning performance ratings that affect pay.

Managers said not having timely and relevant data led to negative team outcomes. 

93% said this happened in the past year, with 30% saying it played a large or very large role in high performers being underpaid or under-recognised, and 27% saying it led to a promotion being given before the individual was ready. 

24% reported misallocated pay spend, and 29% blamed data gaps for a decline in team engagement or morale due to perceived unfairness or poor recognition.

68% of people managers worried similar roles are evaluated using different metrics in different teams, while 67% said they cannot ensure fair pay decisions without a unified view of people and financial data.

Most managers had timely access to HR data (82%) and finance data (75%), but 61% spent at least three hours gathering information from multiple systems before making decisions, with 15% spending more than five hours.

65% said they make an educated guess when getting the right HR or finance data feels like too much hassle.